Chapter 3 – Planning Technical Activities

Strategic Planning

refers to the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals. The top management of any firm is involved in this type of planning.

Intermediate Planning

the process of determining the contributions that subunits can make with allocated resources. This type of planning is undertaken by middle management.

Operational Planning

the process of determining how specific tasks can best be accomplished on time with available resources. This type of planning is a responsibility of lower management.

Goals

the precise statement of results sought, quantified in time and magnitude, where possible.

Strategy

a course of action aimed at ensuring that the organization will achieve its objectives. Strategies will be the concern of top management.

Tactic

a short-term action taken by management to adjust to negative internal or external influences. They are formulated and implemented in support of the firm's strategies.

Standard

a quantitative or qualitative measuring device designed to help monitor the performances of people, capital goods, or processes.

Marketing Plan

the written document or blueprint for implementing and controlling an organization's marketing activities related to a particular marketing strategy.

Production Plan

a written document that states the quantity of output a company must produce in broad terms and by product family.

Financial Plan

a document that summarizes the current financial situation of the firm, analyzes financial needs, and recommends a direction for financial activities.

Human Resource Management Plan

a document that indicates the human resource needs of a company detailed in terms of quantity and quality and based on the requirements of the company's strategic plan.

Policies

broad guidelines to aid managers at every level in making decisions about recurring situations or function.

Procedures

plans that describe the exact series of actions to be taken in a given situation.

Single-use Plans

plans specifically developed to implement courses of action that are relatively unique and are unlikely to be repeated.

Budget

according to Weston and Brigham, a plan which sets forth the projected expenditure for a certain activity and explains where the required funds will come from.

Program

a single-use plan designed to coordinate a large set of activities.